What happened to Crypto in 2022?

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China still ranks in the top 10 for crypto transactions, despite being officially banned at the end of 2021. 2022 is the winter season for the cryptocurrency market.

The cryptocurrency market fell in real time with the global economy. While many sequential backlashes led to this downfall, this article focuses on a few that caused massive disruption.

2022 is a year of crypto adoption and unforeseen massive crypto tax regulations. Countries like Australia, Canada, Denmark, France, Germany, India, Ireland and many more have participated in this mass regulatory exercise. Although this may be unpleasant for traders and investors, it encourages mass adoption in the years to come.

2022, a turbulent year for cryptocurrency

The beginning of the Russian-Ukrainian frictions at the end of 2021 caused a war shaking the world economy, including the oil exchange and the stock market. In addition to this, China officially banned crypto trade and exchanges in September 2021. Even though China’s hostile scenario is nothing new for the crypto community, its subsequent regulations in 2013, 2017, 2019, and 2020 have indeed shaken up the 2022 market. Following this, Luna crashed due to its de-anchoring from Terra USD, lowering almost all algorithmic stablecoins with its debacle. Do Kwon, the co-founder and CEO of Terraform Labs during the disaster, was the sole source of this criminal downfall.

Celsius and FTX

Celsius, a cryptocurrency lending company has filed for bankruptcy after illegally mismanaging user funds by investing them in high-risk platforms expecting a huge return on investment. This backfired on the organization, eventually laying off 20% of its workforce, after which the organization filed for bankruptcy.

FTX, a former CEX, and the second largest cryptocurrency exchange filed for bankruptcy later this year. This is due to Alameda Research, their sister company which allegedly accessed funds from FTX users. Sam Bankman-Fried (SBF) filed for Chapter 11 before which he paid $12 million as retainer to his attorneys.

Ripple (XRP) has faced litigation against allegations made by the SEC (Security and Exchange Commission), and this perpetual battle is expected to last until the first quarter of 2023.

Can we expect a disruption in the blockchain cloud?

The global crypto market cap at the time of articulation is $810.36 billion, which is a bittersweet scene for a $3 trillion industry (its ATH end of 2021). On top of that, the global NFT market suffered over 90% outage in 2022. But to put it in retrospect, these winters (elongated bear market condition) are absolutely vital for the Web3 ecosystem as they weed out unstable projects .

Despite all these odds, there are over 5000 cryptocurrencies that have hit the market this year. Additionally, bear markets unveil the value of money that has been lost due to greed and familiarize alternative platforms for a stable return on investment (ROI). Crypto exchanges encourage users to invest their assets in Defi and Cefi for better APY (annual percentage return) offering a range between 10% and 110% APY.

Take away food

To conclude, the Whales (huge investors) view this 2022 market correction phase as a period of accumulation. There are many successful cryptocurrency projects that have partnered with several major bodies amid these fallouts.

Even though the community is puzzled by “what happened to crypto in 2022?” Now is the perfect time for the Web3 community to create, iterate, perfect their roadmaps and products, and be ready to embrace the next transition.

Disclaimer

This article is for informational and educational purposes only. All articles here on TheNewsCrypto articulated here are based on the opinions of the writers and do not constitute financial advice.

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